Is MLM legal
2 years ago
my friend approached me for joining her MLM . is it legal in india . i hv to pay 2 lakh and in return she shows me a growth potential of 1 crore a year.
Ankur Goel @ Complete Law Shield
Responded 2 years ago
A.It is legal or illegal depends on your mind also.
Greed of people of easy money will be always there and till then fraud MLM schemes will continue.
Greed of people of easy money will be always there and till then fraud MLM schemes will continue.
Helpful
Helpful
Share
A.Dear Sir,
It is illegal because it always depends upon getting new members.
It is illegal because it always depends upon getting new members.
Helpful
Helpful
Share
Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi.
Networking Marketing per se is legal in India. However, certain businesses are categorized as illegal multi-level marketing schemes, as their sole purpose is to misguide and fraud the investors. Therefore the Government of India had classified such network marketing fraud strategies as illegal. Such network marketing schemes are categorized as illegal in India under the statute of the Direct Selling Guidelines 2016 and Prize Chits & Money Circulation Schemes (Banning) Act 1978, some of such schemes include the Money circulation schemes, Ponzi schemes, etc. Thus per se it is legal, however based on certain limitations and restrictions it is considered illegal.
Hope this answer helps you. If you find our answer useful, kindly rate our answer.
Thank you.
Networking Marketing per se is legal in India. However, certain businesses are categorized as illegal multi-level marketing schemes, as their sole purpose is to misguide and fraud the investors. Therefore the Government of India had classified such network marketing fraud strategies as illegal. Such network marketing schemes are categorized as illegal in India under the statute of the Direct Selling Guidelines 2016 and Prize Chits & Money Circulation Schemes (Banning) Act 1978, some of such schemes include the Money circulation schemes, Ponzi schemes, etc. Thus per se it is legal, however based on certain limitations and restrictions it is considered illegal.
Hope this answer helps you. If you find our answer useful, kindly rate our answer.
Thank you.
Helpful
Helpful
Share
A.Hi.
Network marketing is per se legal in India. So are multi-level marketing schemes, except for certain businesses that are categorized as illegal multi-level marketing, as they are done to trap innocent consumers who invest in MLM schemes, and there is no actual trade in goods and services directly by the investors or the promoters. Instead, the only promise is that the investor will make returns. However, such promises never come true and cause investors enormous losses.
Thus as per the above-stated reasons the Government of India had categorized such network marketing fraud strategies as illegal. Therefore such network marketing schemes are not legal in India under the Direct Selling Guidelines 2016 and Prize Chits & Money Circulation Schemes (Banning) Act 1978.
The schemes of MLM India which is considered illegal are Pyramid schemes, Money circulation schemes, Ponzi schemes, etc. Thus per se, it is legal, however certain limitations are provided by the government wherein it is considered illegal in India.
Hope this answer helps, if you find our answer helpful, kindly rate our answer.
Thank you.
Network marketing is per se legal in India. So are multi-level marketing schemes, except for certain businesses that are categorized as illegal multi-level marketing, as they are done to trap innocent consumers who invest in MLM schemes, and there is no actual trade in goods and services directly by the investors or the promoters. Instead, the only promise is that the investor will make returns. However, such promises never come true and cause investors enormous losses.
Thus as per the above-stated reasons the Government of India had categorized such network marketing fraud strategies as illegal. Therefore such network marketing schemes are not legal in India under the Direct Selling Guidelines 2016 and Prize Chits & Money Circulation Schemes (Banning) Act 1978.
The schemes of MLM India which is considered illegal are Pyramid schemes, Money circulation schemes, Ponzi schemes, etc. Thus per se, it is legal, however certain limitations are provided by the government wherein it is considered illegal in India.
Hope this answer helps, if you find our answer helpful, kindly rate our answer.
Thank you.
Helpful
Helpful
Share
Read Related Answers
Nach charges
Dear Client,
You can connect with the bank to know the reason for deduction of NACH charges and solve the matter amicably. But, in case of inaction or unreasonable deductions by the bank, you can file...
Recovery of my fund against Fraud via share market in whatsup group
Dear Client,
send a legal notice to them through an advocate for offence of cheating under sec 416, 420 of IPC. make sure o=to have all evidences in form of proof like receipts, bills etc additionall...
Financial scam related to escort service
Dear Client,
In the given situation, you can file a complaint against the escort agency for deficiency in service and unfair trade practices before the Dist. Consumer Commission under Sec.35 of the C...
loan issue
Dear Client,
In the given scenario, file a police complaint against the malpractice of the lending App. You can also make a complaint to the Cyber Crime Cell online at https://www.cybercrime.gov.in/...
Receive Cash through wire transfer
Dear Client,
Forex and currency trading in India is legal but failure to adhere to authorised brokers or permitted currency pairs is a penal offence under FEMA. If you are interested in online forex t...
Read Blogs on Financial Markets and Services
Financial Markets and Services Lawyers
Find Lawyers by Location
